Nov.

20, 2017
FOR IMMEDIATE RELEASE

A first big step, but a lot of questions remain: HUD announces the allocation to Texas of
$5.024 billion in federal disaster funds for recovery from Hurricane Harvey
Meanwhile the White House proposes plan to offset costs with deeper cuts to domestic
programs that have already been slashed.
Texas will receive $5.024 billion in long-term federal rebuilding funds to recover from Hurricane Harvey,
the U.S. Department of Housing and Urban Development announced today. These funds, known as
CDBG-DR are part of $7.4 billion appropriated by Congress in September.
The Texas Low Income Housing Information Service (Texas Housers) and Texas Appleseed note that
these funds will not be enough to meet the needs of all the Texans who are trying to rebuild their homes
or find affordable rental housing.
The rules for using the funds will be published in the federal register in the near future. Some state
officials have already called for waiving CDBG requirements that prioritize the rebuilding of homes of
low- and moderate-income people, balance housing and infrastructure needs, and provide opportunity
for public comment. That would be wrong.
We are encouraged to hear Texas Land Commissioner George P. Bush declare today that the states plan
for the $5.024 billion grant will focus on temporary housing and repairing damaged homes. But we
remain concerned that the funds may be diverted for other purposes and less urgent unmet needs. We
will monitor the states recovery process to ensure that all families share equitably in the recovery.
The focus must absolutely remain on survivors and rebuilding their homes. said John Henneberger, co-
director of the Texas Low Income Housing Information Service. And it will not be a successful recovery
unless the funds are spent to permit all Texans to have an opportunity to get back in their homes. There
has been a lot of talk here in Texas of big wish list projects for big business and government agencies.
They need to get in line behind Texas homeowners and renters who need these federal funds to get on
with their lives.
Last month, Gov. Greg Abbott requested $61 billion for 283 projects. Only a fraction of that request was
for direct assistance to Texas families.
HUD made todays allocation based on information from FEMA and the Small Business Administration
that recorded the number of seriously damaged homes lacking adequate insurance and businesses that
failed to qualify for SBAs disaster loan program. HUD found that more than 230,000 homes sustained
damage, and about 65,000 suffered serious damage.
Texas needs to prioritize unmet needs, said Madison Sloan, Director of Disaster Recovery and Fair
Housing at Texas Appleseed, because, even if there are subsequent funding allocations, there will not
be enough funds to address all our recovery and mitigation needs. If the entire allocation of funds were
used to repair and rebuild homes, there would only be about $17,000 to repair or rebuild each damaged


and seriously damaged home, with no funds for temporary housing, small businesses or infrastructure.
We also need to be smart about rebuilding, Sloan said. We need to get people back into housing, but
we need to make sure that housing is in safe areas and rebuilt to withstand future disasters.
The White House proposes offsetting this disaster recovery funding and any future allocations by
cutting funding for domestic programs. This fails to take into account that funding levels for non-defense
programs are already being slashed. Further cuts to these funds that help Texans in both the disaster
impacted counties and in other parts of the state meet basic needs, such as shelter and food, would
devastate families. There is an ongoing affordable housing crisis in Texas wholly apart from the disaster.
This disaster cannot be paid for on the backs of the poor and middle class.
We also remain concerned for other Americans impacted by disasters in Florida, California, the Virgin
Islands and especially Puerto Rico. Congress and the Administration must provide the money it takes for
these regions as well. We call on our Texas Congressional delegation to fight, not just for Texas, but for a
full and fair recovery for everyone in our United States.

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Texas Low Income Housing Information Service, or Texas Housers, is a nonprofit 501(c)(3) corporation
established in Austin in 1988 by a concerned group of community leaders, nonprofit, public and private
housing providers and low income people. Texas Housers responds to problems and opportunities
where we can apply our resources to develop model solutions to solve critical housing and community
development problems.

Texas Appleseed is a public interest justice center that works to change unjust laws and policies that
prevent Texans from realizing their full potential. Our nonprofit conducts data-driven research that
uncovers inequity in laws and policies and identifies solutions for lasting, concrete change. For more
information, visit www.TexasAppleseed.org